South Coast Retail Market Update

Occupier demand in the retail sector has remained strong on the South Coast throughout H1 of 2025, despite the challenges of the wider economy, with retail occupancy in the prime retail pitches remaining positive.

Rents have been rebased and business rates have tended to adjust downwards in line with market levels which has helped to support market activity here.

However, there remains a high level of vacancy in the region’s former department stores such as Debenhams and M&S where the concept of repositioning and reimagining such large amounts of retail space is proving challenging.

This is akin to what is being seen nationally, where some 35% of former department stores are still vacant.  Interestingly though, we are seeing some exciting repurposing opportunities come through in Southsea, Portsmouth and Bournemouth.

Occupier demand on the high street remains good particularly for the best retail centres such as at West Quay, Southampton and Gun Wharf Quays in Portsmouth which have seen recent lettings to Garmin, Mango, New Balance and Omnes.

We are also seeing a good level of retail property demand in cathedral cities such as Winchester and Chichester, and popular market towns like Romsey, Petersfield and Lymington

Out of Town (OOT) Retail

The out of town (OOT) retail market is similar to the overall picture seen across the UK currently. Occupancy remains very good, with vacancy rates currently very low at about 4%.

There have been several important lettings so far this year. At Pompey Centre, Portsmouth, B&Q have exited their premises and there were several lettings to Aldi, Matalan and Home Bargains, demonstrating that there remains retail demand I the OOT market.

Convenience Stores, Drive Thru and Drive To

Activity in the convenience store and drive thru / to market remains very popular across the South Coast, with active occupiers including McDonald’s, Burger King, Costa Coffee, Starbucks and Greggs – the latter in particular have been very active, with Vail Williams’ agency support.  Vail Williams’ investment team is also actively marketing a number of well let convenience store opportunities.

We are also seeing entry into the market of new US brands including Taco Bell and Wendy’s to name but two. All of these brands together remain very acquisitive.

Town centre repurposing

South coast town centres are undergoing a transformation, with repurposing of assets at the heart of activity here.

There are two interesting schemes currently underway which demonstrate the overall trend towards a reduction of retail floor space in favour of repurposing space for residential and other uses. The underlying aim is to revitalise our high streets, bringing people back into our towns and cities.

In Southsea, Portsmouth, the former Debenhams department store is being converted for residential use, with commercial units on the ground floor which we have been retained to let. There will also be a GP surgery, veterinary surgery, gym and another unit which remains available to let.

In Bournemouth, the former Beales shopping centre is also being converted to 130 flats with a gym and pool facilities, with some hybrid commercial space in the basement and upper ground floors.

And in Southampton, the Bargate Quarter will see the redevelopment of the former 1980s shopping centre which is already well underway and will see 519 new homes, together with 400,000 sq ft of ground floor commercial space.

At nearby Bitterne, JD Gyms is also taking 28,000 sq ft on a former supermarket premises right in the suburban town centre, transforming the use of that space.

This innovative repurposing of stagnant stock shows how town centres are, increasingly, embracing the repurposing of stock in order to breathe new life into the high street, whilst delivering much needed residential supply to market. Indeed, our town centre regeneration team has actively been advising several local authorities across the South Coast on a variety of repurposing or regeneration projects.